Introduced back in 2008 with the dual goal of reducing fiscal pressure on workers salaries as well as promoting the conclusion of local collective agreements, the productivity-linked pay tax exemption is not expected to be renewed in 2015.
Introduced in 2008 and rolled into 2014, the tax break applied a 10% rate to productivity-linked pay (and replaced the 38% income tax as well as other regional and commune taxes). This move originated from collective agreements on specific measures to raise productivity (including measures on flexibility and working hours, leave times and the use of new technologies, as well as changing job functions, c.f. article No. 130064). The tax break has been successively reduced to a 2014 ceiling level
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